The euro area’s woes are “almost over” after a slow initial response by policy makers, Italian Prime Minister Mario Monti said in Tokyo today. German Chancellor Angela Merkel said yesterday that the crisis is ebbing and her country’s borrowing costs will probably rise as its status as a haven wanes.

Bernanke, who cited “green shoots” of recovery in the U.S. in March 2009 only to see his nation’s jobless rate climb to 10 percent seven months later, said in remarks published yesterday “it’s far too early to declare victory.” The jobless rate remains too high and policy makers don’t rule out further options to boost growth, he said in a transcript of an interview with ABC News anchor Diane Sawyer provided by the network.

Bernanke’s comments contrasted with a series of declarations by Monti during a visit to Japan, with the Italian leader saying a solution to Greece’s challenges is almost accomplished, Spain is employing discipline and Italian actions have helped stop deterioration in Europe’s woes.

Monti predicted a continued rally in Italian bonds. The country sold 3.82 billion euros ($5 billion) of zero-coupon and inflation-linked securities yesterday as borrowing costs fell to a four-month low.

Now, let's use some of the analytical firepower and common sense from the last few BoomBustBlog posts on the Eurocalypse topic...

First of all, nothing was solved with the Grecian game earlier this month. The can was kicked down the road for a maximum of 4 years, but the economy was sentenced to an effective depression as the debt load was increased substantially while the banks shifted future losses to the public sector. Is this the progress that is being referred to? See Beware The Overly Optimistic Greek Speculators As Icarus Comes Crashing Down To Earth!